Strengthening of the rupiah<\/p>\n
Head of the World Bank's representative office in Indonesia,
\nMark Baird, has said that the strengthening of the rupiah in the
\nlast few weeks is an indication of the restoration of market
\nconfidence. This rupiah strengthening evidently shows that the
\ngovernment is now better in managing the economy.<\/p>\n
For some groups, an example being exporters, the strengthening
\nof rupiah, which has taken place relatively quickly, has raised
\nfear. For them, the strengthening rupiah will not only entail an
\nadverse risk to their business but also lead to a weakening
\ncompetitiveness in the global market. On the other hand, there
\nare quite a few people that raise the question whether this
\nrecent strengthening of the rupiah is purely the result of market
\nmechanism or the outcome of the government's manipulations
\nthrough the intervention of Bank Indonesia as the central bank.<\/p>\n
Rupiah strengthening has also provided maneuvering room to the
\ncentral bank to ease its monetary policies so that the rate of
\ninterest may be expected to go down. One evidence in this respect
\nis that the tendency of loans and Bank Indonesia promissory notes
\n(SBI) interest rates have declined.<\/p>\n
It must be kept in mind, though, that to the majority of the
\npublic, their greatest hope does not lie merely in the
\nimprovement of these macroeconomic indicators. The people have,
\nfor a very long time, been longing to see the revival of economic
\nactivities, which, in the last five years of the crisis that has
\nswept the entire country, have considerably shrunk. In other
\nwords, improved macroeconomic indicators will not mean much
\nunless sectors directly related to the public's economic
\nactivities are re-ordered.<\/p>\n
-- Neraca, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/strengthening-of-the-rupiah-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }